Indian police say two people were killed and at least six others wounded in Indian Kashmir when suspected separatist militants hurled a grenade at a security patrol.

Thursday's attack in the Budgam district came a day after Kashmiri separatist leaders held talks with India's prime minister in New Delhi about the divided Himalayan region.

Prime Minister Manmohan Singh and the All Parties Hurriyat Conference, an umbrella alliance of moderate separatist groups, agreed Wednesday to establish a system to discuss a solution to the long-running territorial dispute.

The talks came ahead of the government's all-party Kashmir roundtable set for May 25.

India controls two-thirds of Kashmir and Pakistan the rest, but both claim the entire region. Muslim separatists in Indian Kashmir are fighting for its independence or its merger with Pakistan.